Yuancheng Shares disclosed an earnings forecast, expecting a net loss attributable to the parent company of 60 million to 90 million yuan in the first half of 2026, compared with a profit of 41.9566 million yuan in the same period last year. The net loss after deducting non-recurring items is expected to be 64 million to 94 million yuan, compared with a profit of 27.034 million yuan a year earlier. The company said the loss was mainly due to the fact that some fixed-price orders on hand had locked in selling prices when signed, while core raw material prices such as copper remained persistently high, causing fulfillment costs to exceed contract revenue and overall gross margin to drop significantly. At the same time, intensified industry competition pushed product selling prices lower, further squeezing profit margins.
Yuancheng Cable Co LtdPersistently high copper prices increase fulfillment costs, causing losses.